Consider the Following Premerger Information About Firm a and Firm

question 29

Multiple Choice

Consider the following premerger information about Firm A and Firm B:
Assume that Firm A acquires Firm B via an exchange of stock at a price of $25 for each share of B's stock.Both A and B have no debt outstanding.What will the earnings per share of Firm A be after the merger?

• A) $1.60
• B) $1.86
• C) $1.95
• D) $2.02
• E) $2.10

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